site.btaSerbian Oil Company NIS Seeks US Extension of Operating License

Serbia’s Minister of Mining and Energy, Dubravka Dedovic Handanovic, Tuesday said that Serbia’s oil company NIS - dominated by Russian capital and placed under US sanctions on October 9, 2025, over Russia’s war in Ukraine - has submitted a request to the US Treasury Department’s Office of Foreign Assets Control to extend its operating license, which expires on January 23, RTS reported.

In Handanovic's words, the request to the US administration would allow NIS to continue its operations while further discussions are held on the successful completion of a deal between Russia’s Gazprom Neft and Hungary’s largest oil company, MOL.

On Monday, Hungarian oil company MOL signed the main clauses of a binding framework agreement with Gazprom Neft to acquire the entire majority stake of 56.15% in Serbia’s NIS.

The Russian companies Gazprom Neft and Intelligence, both subsidiaries of Russian energy giant Gazprom, together hold a 56.15% stake in NIS. The Serbian government owns nearly 30% of the shares, while minority shareholders hold about 14%.

"There is still a lot of work to be done to reach agreement on the entire contract. What is important, however, is that the Russian majority owners - Gazprom Neft - have agreed with MOL on the basic principles, and that NIS has submitted a request to the Office of Foreign Assets Control," Handanovic told RTS.

"We can say that there is intent and that the parties have signed certain terms they have agreed on. If the US administration approves it, then MOL will be able to purchase the shares. What matters is that Serbia is an equal participant in these negotiations, and most importantly, that the conditions have been created for the refinery to continue operating," the Serbian minister added.

Handanovic noted that Serbia’s goal has been to improve its position in NIS.

"Serbia has signed a memorandum of understanding with MOL under which Serbia will be able to increase its stake in NIS by 5%. MOL has committed to maintaining the refinery’s level of operations from previous years, as well as increasing it if demand rises," Handanovic told RTS.

MOL is interested in acquiring the 56.15% stake, and once that transaction is completed, Serbia could increase its holding by five percent, with the possible participation of Arab partners as part of that arrangement, she added.

For the first time, Serbian President Aleksandar Vucic announced during a visit to Abu Dhabi last week that there is another participant in the NIS deal - the United Arab Emirates’ state-owned corporation Abu Dhabi National Oil Company (ADNOC).

"ADNOC is a large and successful company, and this would be beneficial for us in every respect. It is important that they agreed to hold talks and take part in these negotiations. If the Office of Foreign Assets Control approves the deal, they would be interested in taking a smaller stake," Handanovic said.